Discuss the Disadvantages of a Corporation

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The Answer is The major disadvantage of a corporation is the fact that the corporation is required to pay separate income taxes at a special corporate rate for any year during which a profit is earned. A second disadvantage to a corporation is the expense associated with forming and maintaining the company. Corporations are required to keep updated minutes of meetings, provide detailed financial statements to creditors and investors, and prepare complex tax returns and SEC filings.

Discuss the Disadvantages of a Corporation

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